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EU Regulators Fine Google Record $5 Billion in Android Case (reuters.com)
The European Union hit Alphabet's Google with a record antitrust fine of $5.06 billion on Monday, a decision that could loosen the company's grip on its biggest growth engine: mobile phones. From a report:The European Commission ordered Google to end the illegal conduct within 90 days or face additional penalties of up to 5 percent of parent Alphabet's average daily worldwide turnover. The EU enforcer also dismissed Google's arguments citing Apple as a competitor to Android devices, saying the iPhone maker does not sufficiently constrain Google because of its higher prices and switching costs for users. The European Commission finding is the most consequential decision made in its eight-year antitrust battle with Google. The fine significantly outstrips the $2.8B charge Brussels imposed on the company last year for favoring its own site in comparison shopping searches. The decision takes aim at a core part of Google's business strategy over the past decade, outlawing restrictions on its Android operating system that allegedly entrenched Google's dominance in online search at a time when consumers were moving from desktop to mobile devices. Android is the operating system used in more than 80 per cent of the world's smartphones and is vital to the group's future revenues as more users rely on mobile gadgets for search services. Google has denied wrongdoing.
The European Commission took issues with the following practices: In particular, Google:
1. has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google's app store (the Play Store);
2. made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices;
and 3. has prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google (so-called "Android forks"). Update: Google has announced that it would be appealing against the record fine. In a statement, the company said, "Android has created more choice for everyone, not less. A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition. We will appeal the Commission's decision."
Update 2: In a blog post, Sundar Pichai, CEO of Google, said, the European Commission's decision ignores and misses several facts. He wrote: Today, the European Commission issued a competition decision against Android, and its business model. The decision ignores the fact that Android phones compete with iOS phones, something that 89 percent of respondents to the Commission's own market survey confirmed. It also misses just how much choice Android provides to thousands of phone makers and mobile network operators who build and sell Android devices; to millions of app developers around the world who have built their businesses with Android; and billions of consumers who can now afford and use cutting-edge Android smartphones. Today, because of Android, there are more than 24,000 devices, at every price point, from more than 1,300 different brands, including Dutch, Finnish, French, German, Hungarian, Italian, Latvian, Polish, Romanian, Spanish and Swedish phone makers.
[...] The free distribution of the Android platform, and of Google's suite of applications, is not only efficient for phone makers and operators -- it's of huge benefit for developers and consumers. If phone makers and mobile network operators couldn't include our apps on their wide range of devices, it would upset the balance of the Android ecosystem. So far, the Android business model has meant that we haven't had to charge phone makers for our technology, or depend on a tightly controlled distribution model. [...] Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them. Today's decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal. Update 3: The French government said on Wednesday that it welcomes the record fine imposed on Google by European Union regulators, with a government spokesman describing it as an "excellent decision."
A number of companies, and startups that compete with Google have weighed in on the development. Open Markets Institute Executive Director Barry Lynn, said, "We hope U.S. enforcers of competition law will learn from and follow this example in both of these cases." Consumer Watchdog Director John Simpson, said, "The U.S. Federal Trade Commission or Department of Justice should also act to end Google's monopolistic abuses, instead of letting the Europeans be the only cop on the antitrust beat." Yelp SVP Public Policy Luther Lowe, said, "The European Commission's ruling of additional illegal conduct by Google on smartphones is another important step in restoring competition, innovation and consumer welfare in the digital economy; the EU must ensure complete compliance from a recalcitrant Google and the U.S. must take action to provide American consumers with similar protections."
Elevation Partners' Roger McNamee, said, Commissioner Vestager's ruling today not only enhances competition and investment opportunities in Europe, but it will have a cascading effect into U.S. markets, where antitrust enforcers have so far failed to take meaningful action." Privacy startup Disconnect CEO Casey Oppenheim, said, "Other players in the digital ecosystem may finally be able to fairly compete with Google, giving meaningful choice to consumers."
The European Commission took issues with the following practices: In particular, Google:
1. has required manufacturers to pre-install the Google Search app and browser app (Chrome), as a condition for licensing Google's app store (the Play Store);
2. made payments to certain large manufacturers and mobile network operators on condition that they exclusively pre-installed the Google Search app on their devices;
and 3. has prevented manufacturers wishing to pre-install Google apps from selling even a single smart mobile device running on alternative versions of Android that were not approved by Google (so-called "Android forks"). Update: Google has announced that it would be appealing against the record fine. In a statement, the company said, "Android has created more choice for everyone, not less. A vibrant ecosystem, rapid innovation and lower prices are classic hallmarks of robust competition. We will appeal the Commission's decision."
Update 2: In a blog post, Sundar Pichai, CEO of Google, said, the European Commission's decision ignores and misses several facts. He wrote: Today, the European Commission issued a competition decision against Android, and its business model. The decision ignores the fact that Android phones compete with iOS phones, something that 89 percent of respondents to the Commission's own market survey confirmed. It also misses just how much choice Android provides to thousands of phone makers and mobile network operators who build and sell Android devices; to millions of app developers around the world who have built their businesses with Android; and billions of consumers who can now afford and use cutting-edge Android smartphones. Today, because of Android, there are more than 24,000 devices, at every price point, from more than 1,300 different brands, including Dutch, Finnish, French, German, Hungarian, Italian, Latvian, Polish, Romanian, Spanish and Swedish phone makers.
[...] The free distribution of the Android platform, and of Google's suite of applications, is not only efficient for phone makers and operators -- it's of huge benefit for developers and consumers. If phone makers and mobile network operators couldn't include our apps on their wide range of devices, it would upset the balance of the Android ecosystem. So far, the Android business model has meant that we haven't had to charge phone makers for our technology, or depend on a tightly controlled distribution model. [...] Rapid innovation, wide choice, and falling prices are classic hallmarks of robust competition and Android has enabled all of them. Today's decision rejects the business model that supports Android, which has created more choice for everyone, not less. We intend to appeal. Update 3: The French government said on Wednesday that it welcomes the record fine imposed on Google by European Union regulators, with a government spokesman describing it as an "excellent decision."
A number of companies, and startups that compete with Google have weighed in on the development. Open Markets Institute Executive Director Barry Lynn, said, "We hope U.S. enforcers of competition law will learn from and follow this example in both of these cases." Consumer Watchdog Director John Simpson, said, "The U.S. Federal Trade Commission or Department of Justice should also act to end Google's monopolistic abuses, instead of letting the Europeans be the only cop on the antitrust beat." Yelp SVP Public Policy Luther Lowe, said, "The European Commission's ruling of additional illegal conduct by Google on smartphones is another important step in restoring competition, innovation and consumer welfare in the digital economy; the EU must ensure complete compliance from a recalcitrant Google and the U.S. must take action to provide American consumers with similar protections."
Elevation Partners' Roger McNamee, said, Commissioner Vestager's ruling today not only enhances competition and investment opportunities in Europe, but it will have a cascading effect into U.S. markets, where antitrust enforcers have so far failed to take meaningful action." Privacy startup Disconnect CEO Casey Oppenheim, said, "Other players in the digital ecosystem may finally be able to fairly compete with Google, giving meaningful choice to consumers."
google is an EU based company, I imagine they could just freeze their finances and shut them down.
Just 8 years! Anyway itâ(TM)s more of monopoly tax, i.e. âoeGoogle, you can screw EU citizens further, hereâ(TM)s the price.â
Given that would wipe out Irelands position as european tech darling ireland probably wouldn't allow it or would procrastinate long enough for google to withdraw the funds.
Failing? The rest of the planet wishes they'd fail like us.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
So what happens if google just refuses to pay?
Nice business you have here. Pity if something happened to it.
Google has money. The EU wants money and has guns. The EU will find whatever excuse needed to keep the money coming in.
Not sure why this was modded as trolling.
Because when you get down to it, it's government monopoly on legalized violence (guns) that ultimately is the power behind all government decisions, regulations, and laws.
Period.
Don't think so?
Stop paying your taxes - under any government.
Completely ignore all notices, subpoenas, court summons. Whatever.
Someone shows up without guns to try to convince you nicely to pay your taxes? Ignore them, too.
Eventually, all governments will send out the guys with guns and haul you away in chains, or shoot you if you resist.
Because if they didn't, the government they represent would have no power at all.
I hope they do leave the EU market, you can have your choice of "not a monopoly iPhone" or some 3rd rate piece of shit. At least until the EU fines Apple for being a US Company next time they need some fast cash.
https://restoreprivacy.com/goo...
I've always felt it unethical to use the products of a company that makes money from advertising https://www.youtube.com/watch?... but this finding has really woken me up - this kind of behavior is why I started to boycott Microsoft decades ago
Replacing GMail is gonna be a hassle and take a long time because I'm not using an independent domain. Weaning myself off YouTube is gonna super difficult.
What cheek, to actually want to enforce a law. Against a corporation, no less.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
If only the problem had anything to do with Hungary, Poland or another East European country...
One EU leader took action that created the problem for all and then asks to stand united? A leader of the richest EU country no less...
Not only East Europe does not have the money to accomodate economy emigrants but they don't want to stay in our country cause noone gets money for not working, including the natives.
And finally, east Europe is much wiser when it comes to Marxist bullshit masquerading as 'compassion' and 'equity'.
We remember the Gulags my friend...and the 'class enemy' and the '5 minutes of hate' and so much more...
Western political discourse in the last decade is taken from 'the manual of the agitprop party worker'. It's scary as hell!